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Procedia - Social and Behavioral Sciences 195 (2015) 1066 – 1073
World Conference on Technology, Innovation and Entrepreneurship
The Increasing Importance of Mobile Marketing in the Light of the
Improvement of Mobile Phones, Confronted Problems Encountered
in Practice, Solution Offers and Expectations
Y. Burçak Boydak g]WDúa *
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Abstract
Improvements in information and communication technologies introduce important marketing opportunities for companies. One
of the last technological improvements affecting the marketing activities of the companies is mobile phones being used as a
channel of marketing communication. In the process of the promotion of the goods, services and ideas, this situation has
increased the importance of 'Mobile Marketing' which can be identified as establishing the marketing communication with the
target clients through mobile phones and sending promotion oriented messages. This study will firstly touch upon the
improvements in mobile communication technologies briefly. Thereafter, the increasing use of mobile phone and the growing
importance of mobile marketing due to its advancing features will be revealed along with its benefits, and solutions will be
offered by means of discussing the problems confronted. Finally, future oriented expectations will also be included.
©
byby
Elsevier
Ltd.Ltd.
This is an open access article under the CC BY-NC-ND license
© 2015
2015The
TheAuthors.
Authors.Published
Published
Elsevier
(http://creativecommons.org/licenses/by-nc-nd/4.0/).
Peer-review under responsibility of Istanbul University.
Peer-review under responsibility of Istanbul Univeristy.
Keywords: Mobile Marketing; Mobile Phones; Technology
1. Introduction
Information society, which influences social, economic, scientific and political thought processes as well as life
styles, is considered to be revolutionary due to the fact that it not only modifies the production methods but also all
aspects of life (Kumar 2005: 40). Information society is essentially a phenomenon that has been created as a result
* Corresponding author. Tel.: +90-212-440-0000.
E-mail address: [email protected]
1877-0428 © 2015 The Authors. Published by Elsevier Ltd. This is an open access article under the CC BY-NC-ND license
(http://creativecommons.org/licenses/by-nc-nd/4.0/).
Peer-review under responsibility of Istanbul Univeristy.
doi:10.1016/j.sbspro.2015.06.150
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1067
of the utilization of information technologies as a means in the transformation of social structure into a network
society (Castells, 2005:3-6). The reflection of this phenomenon on economic life has been the formation of networks
covering the entire population of stakeholders of the enterprises involved. Consequently, enterprises, by taking
advantage of the data transmission speed and volume of information technologies, have had the opportunity to
increase their productivity, market share, market value and profitability (Castells and Himanen, 2002:2-3).
As consumer focused marketing understanding developed, the close observation of customers and keeping
communication channels open with customers at all times to ensure customer satisfaction and earn their loyalty have
become one of the requirements of utmost importance in ensuring competitive strength as an extension of
information society dynamics. As such, the classic marketing paradigms have gone through transformation as they
evolved into new paradigms shaped with the understanding of compliance with customer requirements. These
paradigms, combined with the developing Internet technologies and electronic (cyber) marketing tools, have had a
fast impact on the marketing processes of enterprises giving rise to varied types of marketing approaches and
applications (Kotler, Bowen & Makens, 2003: 631; Solomon & Stuart, 2003: 17-18; Bateman & Snell, 2004: 6-7;
Kotler & Keller, 2012: 565-566).
In general one of the most important marketing approaches, which has emerged from this transformation and
change, is Internet supported “direct marketing”. The developments witnessed in Internet technologies led the way
in developing the means to reach target audiences without being a slave to the restrictions, where time and place are
concerned. “mobile marketing” is currently one of such means used most heavily.
2. Literature Review
2.1. Mobile Communication Technologies, Mobile Phone and Its Significance
The developments in mobile communication technologies are considered to be a mobile revolution by some. This
revolution has started with the wireless telegram in the 1890s moved onto stationary telephone systems from 1910 to
1980, analog mobile systems in the 1980s and the digital mobile systems starting from the 1990s. In the 2000s on
the other hand, multimedia systems that were developed, helped more effective and comprehensive provision of
mobile services (Steinbock, 2005: 2).
Mobile phones, which are made available for the use of people as well as enterprises as a fruit of the many
studies conducted in the field of communication technologies, are a means of communication that people use when
they are on the go and need to communicate with others. In the development process of mobile phones, the objective
was to ensure freedom of communication for people independent of the location they are presently at and as such the
first mobile phone call was placed on April 3, 1973 in the United States of America in New York by Martin Cooper.
The innovation of the mobile phone facilitated communication between people and removed any time and place
constraints imposed by stationary phones (Cooper, History of Cell Phone).
Mobile communication technologies offer many services that improve the quality of life for people: to give an
example, SMS referred to as texting (Short Message Service) and the transfer of documented information that is
MMS (Multimedia Messaging Service) gave rise to the age of information exchange supported by audio, visual and
imagery means. These developments rendered the mobile phones, means of mobile entertainment, a new channel of
marketing for manufacturers and retailers, a means of multimedia shopping as well as Internet connection,
reservation handling, ticket purchasing and marketing of goods and services.
On the other hand, one of the subjects that the marketing department personnel most place emphasis on within
the scope of promotional activities is to be able to contact the potential customers without any time and place
constraints. At this point the fact that the mobile phones are able to meet this requirement much more effectively
than other means, though in a limited context, lent even more significance to the emphasis placed on these
instruments. Accordingly, it can be said that the technological development that has the highest potential in effecting
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marketing activities after the introduction of the Internet would be the increasing use of mobile phones led by the
advances made in the mobile communication technologies as well as the development of new features, where these
phones are concerned.
The following are some of the reasons why the mobile phones are considered to be important where the
marketing activities are concerned (Yuan & Cheng, 2004):
x
x
x
x
x
x
The fact that customers always carry their mobile phones on them regardless of where they go;
They are always open for communication;
The more attention grabbing nature of one-to-one contact with customers;
Being able to maintain the messages received for later response by the customers;
Opportunity to have one-to-one audio-visual communication with customers;
Being suitable for customers and effective for the marketing executives.
Therefore, it can be said that mobile phones have become very effective tools of communication as they provide
means of instant contact by their users who carry them in their pockets, purses and briefcases as they remain
switched on at all times providing high quality of communication, allowing enterprises to establish personal contact
with their clientele using them as a tool in their marketing activities to communicate with their customers on one-toone basis (Howard, 2003; Yuan& Cheng, 2004; Scharl, Dickinger & Murphy, 2005).
Furthermore, mobile phones have provided the means for communication, e-mail management, research,
ordering and purchasing capabilities regardless of their location and time without the need to use computers (Yen &
Chou, 2000; Aungst & Wilson, 2005). By means of mobile Internet and phones, consumers are now able to have
instant access to the goods and services they require, while enterprises are able to have their marketing and sale
focused messages relayed directly to their customers, influencing their purchasing behavior.
On the other hand, in today’s world, each and every sector is required to have a structure reinforced by its own
dynamics interwoven with technological advancements. This phenomenon is an important factor that triggers an
approach customized “to the person”. Due to the fact that mobile phones can be personalized in terms of their
features, they are viewed as tools of self identification as well as being a part of the identity of their users
(Smutkupt, Krairit & Esichaikul, 2010: 6). However, their full personalization ensures that the commercial messages
are turned into significant means bearing valuable information (Bauer et al., 2005: 181). Consequently it can be said
that mobile phones, as a means of marketing, offer the opportunity to customize marketing activities conducted
according to the people involved provided that the sensitivity to use them in the most appropriate manner is shown.
In the light of all that is said above, mobile phones have been stated to be very influential tools in marketing and
sales activities (Howard 2003, Yuan & Cheng 2004, Scharl, Dickinger & Murphy, 2005).
2.2. Mobile Marketing and its Importance
Although there are many different definitions regarding marketing in the mobile media in literature, Leppäniemi
et al. are of the opinion that these definitions are mostly technology-based and thus errors may occur in
conceptualization (Leppäniemi, Sinisalo & Karjaluoto, 2006). Whereas it is seen that consensus is increasingly
being reached on the definition; “use as a marketing communication program either with multimedia or singularly as
an integral content distribution and receiving direct response through wireless media” of the Mobile Marketing
Association (MMA) (Leppäniemi &Karjaluoto, 2008). However, Leppäniemi et al. have defined mobile marketing
as “the use of mobile environment as a marketing communication tool” (Leppäniemi, Sinisalo & Karjaluoto, 2006).
Mobile marketing is also defined as “an interactive marketing tool used in the promotion activities of
goods/services or ideas through mobile phones (smart phones) in a manner that benefits the business and all of its
stakeholders” (Scharl, Dickinger & Murphy, 2005: 162). A similar definition is also made by Pousttchi and
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1069
Wiedemann. According to this definition, mobile marketing is marketing communication realized with the purpose
of promoting products, services, or ideas (Pousttchi & Wiedemann 2007: 1).
On the other hand, it has been determined that scientific papers on mobile marketing subject are disseminated
into the fields of management, marketing, commerce, engineering, information technologies, information systems,
finance, and operational research in journals from diversified disciplines, and that there is no framework of
classification that is commonly held for mobile marketing. Due to the fact that the phenomenon does not have a
FRPPRQFRQFHSWXDOL]DWLRQWKHPRELOHPDUNHWLQJFRQFHSWLVVWLOODPELJXRXV9DUQDOÕ7RNHU+RZHYHULWLV
observed that mobile marketing is positioned as a subtitle of direct marketing from among the marketing
communication tools.
When mobile marketing is mentioned, the first thing that comes to mind is mass text-messaging (SMS).
Limiting mobile marketing to only advertisements and campaigns sent by SMS will prevent the use of mobile
phones in an effective manner. Accordingly, mobile marketing may be benefited from as a new direct marketing
tool that accesses wide audiences in the most feasible and effective manner, and which can establish interaction
anywhere and at anytime with the target audience.
Due to the fact that mobile phones are an important promotional tool within mobile marketing, they ensure
more effective undertaking of advertising, sales development, public relations, and direct marketing activities. For
example, discount coupons received by the target audience while they are passing by a restaurant or store, or
information sent about campaigns may significantly change the purchasing behaviors of users receiving the
marketing message at that instant. Accordingly, when implemented in a successful manner, mobile phones become a
very important marketing tool (Howard, 2003)
However, it is observed that mobile marketing is used worldwide with the purpose of ensuring brand
communication rather than increasing sales. Yet businesses have to establish communication with potential
customers in order to convey information regarding new brands, enhanced product range, and new goods and
services. Such communication is about reaching the right target audience in an effective manner, and contributing to
a more effective preparation of marketing campaigns, in a manner that has a structure with a direct and higher
return. Mobile phones, which people can always carry with them, has become an important tool that provides the
opportunity to establish a more effective communication with the target audience without any limitations of location
or time on a 24/7 basis. The fact that detailed information, pertaining to mobile phone users sourced from GSM
operators, is accessible throughout the mobile marketing activities ensures a more effective marketing (advertising
and sales offer) activities directed at target audiences, and enabling the sending of personal sales offers that are
suitable to the particulars of mobile phone users in an effective manner has caused the importance of mobile
marketing to increase.
The importance of mobile marketing may also be explained by revealing its superiority to Internet marketing
activities that affect the marketing activities of businesses. While a limited number of customers can be accessed
with marketing activities on the Internet, it is possible to reach much larger customer numbers in conclusion to
mobile phones being used more extensively at all hours of the day. In addition to this, the fact that the number of
mobile phone users is increasing much faster compared to the number of Internet users has made it possible to send
more effective sales offers oriented to the target audience as a result of determining personal information of users
and the regions in which they reside.
2.3. Benefits of Mobile Marketing
The positive effect of mobile phones, which are improving and getting cheaper, with lower costs compared to
conventional media, being computational, tailor-made, and interactive, plays an important role in the rise of mobile
marketing within marketing communication. According to Friedrich et al., there is no reason left for marketers not to
break with the tradition and use the mobile platform. Specialization field of marketers is not technology, and
furthermore this is not expected of them. While mobile marketing was a process to which marketers had to allocate
extensive time, analysis, and investment a short while ago, which ended in disappointment or mistakes, a great
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revolution has been experienced in recent years in the presentation of mobile services first in Asia, followed by
Europe, and then the USA. Large budgets are not required, as was the case previously, for a mobile marketing
campaign, and it suffices for the marketing professionals to provide the brand and content and leave the rest to a
service provider (Friedrich et al., 2009).
In practice a business has three ways by which it may undertake a mobile marketing campaign. These are: 1.
Use of in-house resources, 2. Receive services from one or more agencies (advertising agency, mobile advertising
agency, etc.), and 3. A combination of the aforesaid methods. As many companies do not have the necessary
technology and experience to carry out a mobile marketing campaign, they generally prefer the second choice
(Leppäniemi &Karjaluoto; 2008).
Moreover, computation in mobile marketing provides substantial advantages to companies in comparison to
traditional media. There are many methods used in the computation of mobile campaign results. These are classified
as:
x
x
x
x
Information as to delivery of the message (number of messages sent, messages delivered, number of
messages returned, number of responses)
Ratio of messages opened
Click rates of message content (Measurement of those connecting to the link via URL)
Purchase follow-up (for example, total sales value measurement in purchasing a melody). (Direct
Marketing Association).
Along with computation, mobile marketing also provides great opportunities to firms with respect to
establishing direct communication, without any time or location constraints, with consumers (Haghirian, Madlberger
& Tanuskova, 2005). When compared with traditional media, the following fundamental advantages of mobile
PDUNHWLQJVWDQGRXWIRUILUPV9DUQDOÕ7RNHU<ÕOPD]
x
x
x
x
x
x
x
x
x
x
Success criteria can be followed in more detail, reliably, and easily.
It allows live campaign measurement and follow-up.
SMS marketing is very cost-effective.
It allows for one-to-one marketing.
It is interactive.
It enables instant response from the consumer.
It permits corporate targeting (mobile advertising can be sent only to those at a certain place or who are
participating to a certain activity).
Rate of return is greater than 10%.
Mobile advertisements remain stored in the memory of the device.
It allows for the instant dissemination of the marketing message, and creates a powerful viral effect.
2.4. Challenges Encountered in Mobile Marketing
Although many businesses have started to allocate a permanent budget to mobile marketing from their annual
budget, there are some issues that cause mobile phone users not to show the expected interest and positive attitude to
mobile commerce and shopping, and make mobile marketing activities difficult (Baueret et al., 2005; Barutçu,
2007). It is possible to summarize these issues as follows:
x
x
x
x
x
Mobile phone screens being small
Difficulties encountered in writing and reading of messages
High cost of mobile calls
Mobile phone batteries running out in a short period
Technological skills of mobile phone users being possibly poor
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x
x
x
x
x
1071
Tenacity of traditional shopping culture
Perception of some risks in purchases made by mobile phones and confidence not being fully established
Abstract services being provided
Users not being fully informed of the benefits mobile phones provide
A mobile phone marketing mix not having been formed up to now.
In particular, the small size of phone screens and keypads makes it proportionally difficult to search for goods
and services (Fenech, 2002; Barnes, 2002; Yuan & Cheng, 2004; Funk 2005).
Besides realizing mobile shopping, there is also the issue of delivering mobile advertisements on time. The
most important deficiency of mobile advertisements is not being able to guarantee that messages sent are delivered
to the target audience instantly. This issue causes important problems especially when time sensitive information is
sent such as weather reports, stock exchange information, and product availability information. Accordingly, it is
necessary to remove the obstacles explained and to establish a comfortable, effective, and low cost commercial
environment.
3. Conclusion & Suggestions
The mobile revolution, mobile life and/or lifestyle that has occurred as a result of the changes in demands and
needs of consumers driven by technologic developments and the increase in the use of mobile phone is now a
leading topic of discussion. In order for businesses to achieve competitive advantage and sustain their activities in a
reliable manner, they need to closely follow new technologies and to implement these changes. The basic reasons
for the implementation of new technologies by businesses may be listed as: their effect on the activities of
businesses, providing innovations that enhance the quality of life of people, their applicability to the activities of all
departments ranging from production to marketing, and especially providing new marketing channels.
The latest example of technologic developments is the use of mobile phones in marketing activities. Mobile
phones may nowadays be used as an essential communication and marketing channel due to their becoming a
multimedia communication tool, portable entertainment tool, marketing tool of retailers and producers, multimedia
shopping tool, ticket purchase and reservation, perform payments, and a tool to establish mobile Internet connection.
Developments in the mobile communication technology have resulted in enhanced functions of mobile phones,
rapid growth of mobile commerce, affecting commercial activities of businesses, adding a new dimension to the
purchasing habits of customers, and the mobile marketing concept has emerged. The possibility to establish tailormade text, audio, and video communication through mobile phones, to send sales offers to the target audience
anywhere and at anytime has increased the importance of mobile marketing.
Mobile marketing is the latest marketing tool that has surfaced after Internet marketing that aims to
communicate with target customers through mobile phones and perform marketing activities, which can be
considered within the direct marketing notion. In the initial phase of the mobile marketing activities, instead of
performing mass mobile marketing open to all, one-to-one mobile marketing and sales activities should be
undertaken through personal communication with the target audience. For example, instead of considering mobile
phones as an advertising tool through which sales offers are sent to millions of people simultaneously, they should
be considered as tools used with the purpose of making direct sales offers to the target audience. The fact that GSM
operators have detailed information (age, income level, marital status, number of children, occupation,
neighborhood and city resided at, etc.) regarding their users results in mobile marketing being a suitable tool for
direct marketing and sales.
Mobile marketing applications have enabled other applications that are integrated with other marketing
applications. Mobile Customer Relationship Management (mCRM) is one of such applications. The use of such
applications in the future will require the planning of permission policies that are suitable to users (Silberer &
Schultz, 2010: 173). On the other hand “Interactive Mobile Marketing” concept has emerged as a result of
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marketing carried to this channel becoming appealing due to people having their cell phones with them at all times
(Yuan & Cheng, 2004).
Mobile applications may be considered in two categories, as positive and negative with respect to the effects
they currently create and will do so in the future. Altman expresses the positive and negative points mobile
applications will achieve respectively as follows (Altman, 2004: 3-5):
x
x
The effect mobile applications will have on the purchasing behavior of people, especially on their vacation
habits
Virtual life coming to the forefront in the post-information society, together with the advances that will be
seen in biotechnology and nanotechnology and the possible issues such a virtual environment will raise.
The effects mentioned in the first point are positive effects that mobile applications will create in the marketing
and sales dimension, whereas others are negative effects experienced from a sociological aspect.
Based on all these, some actions may be proposed that may contribute to the development of a successful
mobile commerce system:
x
x
x
x
Call and texting fees to be made within the framework of mobile marketing may be reduced.
An effective mobile marketing mix (product, price, promotion, and distribution) strategy may be prepared
in order for the system to be adopted by customers.
In resolving the issue of difficulty faced in finding goods and services due to mobile phone screens being
small, programs may be developed that facilitate audio search, offer and/or shopping of goods and services.
A mobile shopping medium may be ensured that is creative, entertaining, and personal as well as easy to
use at the highest level possible.
As mobile marketing will thus provide an effective communication between businesses and customers, this
situation may cause the competition conditions in the current market to change. However, mobile shopping should
not be expected to completely replace the conventional shopping culture over the short term.
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